Orbitz reports loss, plans to cut 10 pct of jobs

NEW YORK, Nov 10 (Reuters) - Online travel company Orbitz Worldwide Inc (OWW.N: Quote, Profile, Research, Stock Buzz) said on Monday it posted a third-quarter loss due to an impairment charge and said its outlook for the fourth quarter has deteriorated because of the weaker economy.

NEW YORK, Nov 10 (Reuters) - Online travel company Orbitz Worldwide Inc (OWW.N: Quote, Profile, Research, Stock Buzz) said on Monday it posted a third-quarter loss due to an impairment charge and said its outlook for the fourth quarter has deteriorated because of the weaker economy.

The company said it plans to cut its U.S. work force by 10 percent -- roughly 100 jobs -- by the end of 2008, generating $20 million in annualized savings.

Orbitz reported a net loss for the third quarter of $287 million or $3.44 per share, compared with a net loss of $32 million in the third quarter of 2007.

Third-quarter net revenue rose about 9 percent to $240 million from $221 million in the year-ago period.

Orbitz said the net loss in this year´s third quarter was due to a noncash charge for impairment of goodwill and intangible assets of $297 million or $3.56 per share. Without the charge, it would have made a net profit, it said.

"Our businesses performed solidly in the third quarter despite the cutbacks in U.S. airline capacity. However, beginning in October, we have experienced a slowdown in all of our businesses around the world," Orbitz Chief Executive Steven Barnhart said in a statement.

Barnhart said Orbitz expects growth in gross bookings and revenue to fall below its long-term target range of nine to 12 percent in the fourth quarter and in 2009.

"The economic and industry outlook for the fourth quarter has deteriorated markedly over the past six weeks," he added.

Orbitz expects severance and related charges of $2 million to $3 million in the fourth quarter.

Orbitz shares have fallen from $10 last December to a close of $3.18 on Monday.